Posted Mon Mar 02 06:44AM
My Bet is on Warren
It is difficult to find bright spots in the current economy. The stock market is being hammered and even Mr. Buffett is being challenged. Berkshire-Hathaway experienced its largest loss since its inception. However, Mr. Buffett doesn't fear, as he takes a long-term view. He admits we are in for a rocky ride this year and probably next, but is confident, that as a nation, we will overcome this travail as we have always done in the past. I will put my money on Warren whose company's stock started at $66 and is now worth $78,600 a share. Another encouraging sign was the amount of corporate debt underwritten since the beginning of this year as compared to last year. This bodes well for banks who charge fees to underwrite the bonds and shows signs that the credit markets are beginning to thaw.
To be sure, we can certainly be thankful for the rain this past week. If we are gloomy about financial markets, at least the thought of achieving our normal rainfall is a pleasant one. Even with the rain, buyers are still coming out to view homes. Most opens had double digit attendance.
The buyer interest is there. A few markets are beginning to see a modest pick up in sales activity. Both SF and the East Bay are seeing increasing numbers of sales. In spite of the economic conditions, a few listings are receiving multiple offers. The bulk of these sales are still under a million dollars. In SF, a 3 bedr. /2 ba. Forest Hill fixer listed at $699K entertained 8 offers and went well over asking. In SF a 3 bedr./3 ba. Sunnyside listing priced at $899K received 4 offers. In the East Bay, a 2bedr./2ba. condo in Berkeley listed at $575K garnered 6 offers.
The highlight of the week is that we are experiencing a few more million dollar plus sales, as sellers are pricing their homes more realistically to market conditions. A good example is on the Piedmont side of Montclair where a 4bedr./4ba. home priced at $1.295 mil. received 4 offers. The one to two million dollar category is seeing a little more life. These transactions require patience, as both buyers and sellers are taking their time with negotiations. It is getting done, but not without a great deal of give and take. One more note, the trend continues for unique upper end properties with a $5mil. sale of a home on the Belvedere lagoon that went into escrow after seven days on the market.
Source: The Goldman Report
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